Some people use credit cards for the perks and rewards, while others use credit cards to buy groceries when they don’t have the money. You’re just throwing yourself into a pile of debt if you’re relying on your credit cards to get through the week.
Old habits are hard to break, but once you learn how bring you credit card usage to a screeching halt, you’ll keep more money in your pocket. Listed below are 8 tips that’ll help you stop using your credit cards for good.
Keep them out of sight
A wise man once said, “Out of sight, out of mind.” If you want to stop using your credit cards, then keep them out of your reach.
Look at your spending habits
Does it feel like your paycheck disappears as soon as get paid? Sit down and ask yourself, “Where is my money going?” If you notice where you are spending money on unnecessary items, try to cut back to save money and limit your credit card use.
Create a budget
You can never go wrong with a budget. Make a list of your monthly expenses (bills, student loans, grocery bill, etc.), calculate the total cost, and stick with it!
Keep cash on hand
Carrying cash and only cash will keep you from overspending and splurging on items that you don’t need. Having a certain amount of cash with you forces you to spend money wisely.
Reduce your credit card limit
The higher the credit card limit, the more money you can spend. If you’re credit card limit maxes out at $5,000, then what’s going to stop you from spending $5,000? Absolutely nothing. Get in contact with your credit card provider and see if they can lower your credit card limit. A lower limit will make you more conscious of how much money you’re spending.
Fight your shopping temptation
At some time point, we just have to have some self control. Do you really need that new pair of shoes? If you can’t afford the shoes without using your credit card to pay for them, the you definitely don’t need them. Shopping is therapeutic, but racking up credit card debt is far from peaceful. Take a break (a long break) from shopping to stop using your credit cards so much.
Pay off your credit card debt
Take steps towards paying off your credit card debt, instead of building up more debt. Once you pay off your credit card debt, you’ll feel more reluctant to using your credit card. Because nobody wants to go back into debt once they’ve paid it all off.
Lock it away
Like I stated earlier, if your credit cards are out of your reach, then you won’t be able to use them. Invest a combination lock safe, and place your credit cards inside the safe. Store the safe in the back of your closet or under your bed to keep it hidden.
Create an emergency fund
We all know that life has unexpected surprises, so we need to plan for those events by creating an emergency fund. Having an emergency fund will prevent you from using your credit cards during emergencies. Saving a reasonable amount on money every month can help you build your emergency fund quickly.
Credit cards aren’t bad, but can easily be misused which leads to bigger financial problems down the road. If you know that you’re going to have a hard time using a credit card wisely, then it’s best to avoid using it at all. If you have any tips on credit card usage, then share you ideas with me in the comment section below.